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Winsome Breweries Ltd.

BSE: 526471 Sector: Consumer
NSE: N.A. ISIN Code: INE391C01011
BSE 00:00 | 10 Aug 9.25 0.05
(0.54%)
OPEN

9.38

HIGH

9.65

LOW

9.06

NSE 05:30 | 01 Jan Winsome Breweries Ltd
OPEN 9.38
PREVIOUS CLOSE 9.20
VOLUME 11554
52-Week high 16.89
52-Week low 8.55
P/E
Mkt Cap.(Rs cr) 26
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.38
CLOSE 9.20
VOLUME 11554
52-Week high 16.89
52-Week low 8.55
P/E
Mkt Cap.(Rs cr) 26
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Winsome Breweries Ltd. (WINSOMEBREW) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

WINSOME BREWERIES LIMITED

Report on the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying standalone financial statements ofWINSOME BREWERIESLIMITED {‘the Company') which comprise the Balance Sheet as at March 312021 theStatementof Profit and Loss (including Other Comprehensive Income) foeStatement ofChangesin Equity and the Statementof Cash Flows for the year ended on that date and asummary of the significant accounting policies and other explanatory information(hereinafter referred to as ‘tie standalone financial statem ents').

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby theCompanies Act 2013 ("the Act") In themanner so required and giveatrueandfair view in conformity with thelndian Accounting Standards prescnbed under section 133 oftheAct read with the Companies (Indian Accounting Standards) Rules. 2015 as amended findAS") and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 312021 the loss and total comprehensive incomechangesin equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of theAct (SAs) Our responsibiitiesunder those Standards are further descnbed in the Auditor's Responsibilities for theAudit cf the Standalone Financial Statementssection of our report We are independentof the Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the independence requirements that arerelevantto our audit of the standalone financial statements under theprovi sions of theActand the Rules maae thereunder and we have fulfilled our otherethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficientand appropriate to provide a basis for ouraudit opinion on thestandalonefinancial statements.

Emphasis of Matter

We draw attention to Note No. 41 of the financial statements regarding the impact ofCOVID-19 pandemic on the Company. Management Is of the view that there are no reasons tobelieve that the pandemic will have any significant impact on the ability of the companyto continue as a going concern. Nevertheless the Impact in sigfit ofevolvement ofpandemicin future period is uncertain.

OurOpinionisnot modified in respect of thematter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the contextof our audit ofthe standalone financialstatements asa whole and in forming our opinion tiereon and we do not provide a separateopinion on these matters. Wedonotconsideranymatter to be key audit matter to becommunicated inourreportfortneyearunderaudit. Information Other than the StandaloneFinancial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation The other information comprises tie information included in the ManagementDiscussion and Analysis. Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information butdoes notInclude the standalone financial statementsand ouraudltor'sreportthereon.

Our opinion on the standalone financial statem ents does notcover the other informationand we donotexpress any form of assurance conclusion thereon.

In connection with our audit of tie standalone Inandal statements our responsibilityis to read the other Information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our auditor otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other ^formation we are required to report that fact We have nothingtoreportin this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone ftiancial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes In equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a gang concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operati ons or has norealisti c alternative but to do so.

The Board of Directors are respon sibie for overseeing the Company's finan trialreporting process.

Auditor's Responsibilities for the Audit ofthe Standalone Financial Statements

Our objectives are to obtain reasonable assurance aboutwhether the standalone financialstatementsas a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detectamaterialmisstatementwhen itexists. Misstatements can arise from ffaudorerror and are considered material if Individually or In the aggregate they couldreasonably be expected to Influence the economic decisions of users taken on the basis ofthese standalone financial statements.

As part of anauditin accordance will SAs weexerciseprofessionaljudgmentand maintainprofessional scepticism throughout theaudil We also:

- Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit proced u resresponsive to th ose risks a n d obtain audit evidence th at is sufficient andappropriate to provide a basis for our opinion. Th e risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in tie circumstances. Under section143(3)(l) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and tneoperatkigeffectiveness of such controls.

• Evaluate the appropriateness ofaccounting policies used and the reasonablenessof accounting estimates and related tSsclosures made by management.

- Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions dial may cast significant doubt on the Company'sability to continue as a going concern. If we condude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our condusions are based on the audit evidence obtained up to the date of ourauditor's report However future events orconditionsmay cause the Company to cease tocontinueas a going concern

• Evaluate the overall presentation stiucture and content of the standalonefinancial statements induding the disclosures and whether the standalone financialstatementsrepresentthe underlying transactions and events in a manner fiat achieves fairpresentation Materiality is the magnitude of misstatements in the standalone financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beInfluenced.

We consider quantitative materiality and qualitative factors in (I) planning the scopeofour audit workandin evaluating the results of ourwork; and (ll) to evaluate the effectof any identify Admisstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and liming of the audit and significant audit findings includinganysignificantdefidenciesin internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with them alrelationships and other matters thatmay reasonably be thoughtto bear on our independenceand whereapplicable related safeguards. From the matters communicated with those chargedwith governance we determine those matters that were of most significance in Ihe audit ofthe standalone financial statements of the current period and are therefore the key auditmatters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the publicinterestbenefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ('the Order') Issued bythe Central Government in terms of Section 143(11) of the Act we give In ‘Annexure Pa statement on the matters specifieid in paragraphs 3 and4 of the Order.

2. As required by Section 143(3) of Ihe Act based on our audit we report th at:

a) We have sought and obtained al I the Information a nd explan ations which to thebest of our knowledge an d belief were necessary for the purposes of our audit.

b) Inour opinion proper books of account as required by law have been kept by theCompany sofarasitappearsfromourexamination of those books.

c) The Balance Sheet the Statement of Profit and Loss Including Other ComprehensiveIncome Statement of Changes In Equity and the Statement of Cash Flow dealt with by thisReport are in agreementwith the relevant books of account

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Secfon 133 oftheAct read with Rule7 of the Companies (Accounts) Rules2014.

e) On the basis of the written representations received from the directors as on March312021 taken on record by the Board of Directors none of the directors is d isq ualifieda s on March 312021 from being appointed a s a director in terms of Section 164 (2) ofIhe Act.

f) With respect to Ihe adequacy of the internal financial controlsover financialreporting ofthe Company and the operating effectiveness ofsuch controls referto ourseparate Report in "Annexure II". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to theother matters to beincluded in the Auditor's Report inaccordancewith the requrements of section 197(16)ofthe Ad as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is Inaccordance with toe provisions of section 197 oftheAct.

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opin ion and to the best of ou r information and acccrdin g to Ih e explanations giverto us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements. Refer note 33 to the financialstatements.

i. The Company has made provision as required under the applicable law or accounlingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

ANNEXURE-1 TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to In paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

i) In respect of its fixed assets:

a) The companyhasmaintained properrecordsshowing full particulars includingquantitative details and situation offered assets.

b) As explained to us fixed assets have been physically verified by the management ina phased periodical manner which in our opinion is reasonable having regard to the sizeof the Company and nature of its assets. As Informed to us no material discrepancies werenoticed on such physical verification.

c) Tittedeeds In respect of all immovable properfies are held in thenameof the company.

ii) (a) As explained to us physical verification has been conducted by the managementatreasonable intervals in respect of finished goods stores spare parts and rawmaterials.

(b) In our opinion the procedures of physical verification of inventory followed bythe management are reasonable and adequate in relation to the size of the companyandthenature of its business. We are explained thatno material discrepancies have beennoticed on physical verification ii) As informed to us the company has not granted anyloans secured or unsecured to companies firms. Limited Liabiity Partnerships or otherparties covered in the registermaintained under section 189 ofthe Companies Act 2013

iv) According to the information and explanations given to us the company has compliedwith the provisions of Section 185 and 186 wherever applicable in respect olloansgivenand investments made by the company. Weare informed that the company has notprovided anyguarantee or secunty during theyear.

v) According to the information and explanations given to usthe company has notaccepted any deposits in terms ofthe directives issued by the Reserve Bank of India an dthe provi sions of sections 73 to 76 or a ny other ref evant provisi ons of the C ompan ies Act 2013 a nd th e ru les If am ed th ere u nd er.

vi) The Central Government has prescribed the maintenance of cost records undersub-section (I) of section 148 of the Companies Act in respect of certain Companies. Wehave broadly reviewed such records and are of theoplnbn that prescribed accounts andrecordshavebeen maintained.

vii) a) As per information and explanations given to us the company is regular indepositing undisputed statutory dues including provident fund employees' state insuranceincome-tax service tax goods and service tax. duty of customs duty of excise valueadded tax cess and any other statutory dues with the appropnate authorities As informedto us there are no outstanding statutory dues in arrears as at the last day of thefinancial year concerned for a period of more than six months from the date they becamepayable b) We have been informed thatfollowing disputed demands have not been depositedon account ofpending appeals:

Nature of the dues Amount of Demand (Rs) Amount Paid under Protest (Rs.) Balance Amount (Rs.) Forumwhere appeal is pending
State Exciseduty 30.50 0.00 3050 Revenue Board
State Excise duty 1.25 0.93 032 HonorableHigh Court of Raj asthan
Service Tax 046 0.05 0.41 Assistant Commissioner of Central Excise (Appeals)
Service Tax 0.90 0.09 031 Assistant Commissioner of Central Excise (Appeals)
Income Tax 1.87 0.00 137 Commissioner of Income Tax (Appeals) Kolkata
Income Tax 1069 0.00 10.69 Commissioner of Income Tax (Appeals) E Assessment
Service Tax 2970.43 184.07 278636 CESTAT New Delhi

viii) Based on our audit procedures and on the basis of Information and explanationsgiven to us by the management we are ofthe opinion that there is no default in repaymentof loans or borrowings to the financial institutions and banks as at the year end. Thereare no loans from Government and the company has not issued anydebentures.

ix) The company h as n ot ra i sed any money during the year by way of term I oans andinitial or further public offer.

x) Based upon the audit procedures performed and information and explanations given bythe management we report that no fraud by the Company or on the companyby its officersor employees has been noticed or reported during the course of our auditfor the year ended31.03.2021.

xi) According to information and explanations given to us the Company has paidmanagerial remuneration during the year as per provisions of section 197 read withSchedule Vof the Companies Act 2013.

xii) The provisions of dause(xii)ofthe Order arenotapplicableasthe company isnotaNidhiCompany as specified in thedause.

xiii) According to information and explanations given to us we are of the opinion thatall related party transactions are in compliance with the Section 177 and 188 of CompaniesAct 2013. Necessary disclosures has been made in the financial statements as required bythe applicable accounting Standards.

xiv) According Id information and explanations given to us the company has notmade any preferential allotment or private placement of shares or debentures durrgtheyear.

xv) According to Information and explanations given to us the Company has not enteredinto any non-cash transaction with the director or any person connected with him duringtheyear.

xvii) In our opinion in view ofits business activities the company isnotrequired tobe registered under section 45IAof Reserve Bank of India Act 1934

ANNEXURE- II TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) under Report on Other Legal and Regulatory Requirements'section of our report of even date)

We have audited the internal financial controls overfinancial reporting of WINSOMEBREWERIES LIMITED{"theCompany')as of 31"March 2021 In conjunction with ourauditof the standalone Ind AS financial statements oflheCompanyfortheyearended on thatdate

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial ReportingIssued by the Institute of Chartered Accountants of India. These responsibilities Includethe design Implementation and maintenance of adequate Internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessIncludkig adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required undertheCompanies Act 2013

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the‘Guidance Note") and the Standards on Auditing issued by ICAI and deemed tobe prescribed under section 143(10) of the Companies Act 2013 to the extent applicableto an audit of Internal financial controls both applicable to an audit of InternalFinancial Controls and both issued bylhe Institute of Chartered Accountants of IndiaThose Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance aboutwhether adequate internalfinancial controls overfinancial reporting was established and maintained and ifsuchcontrols operated effectively in allmaterial respects Our auditinvolvesperformingproceduresto obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the desigr and operatingeffectiveness of Internal control based on the assessed risk. The procedures selecteddepend on the auditor's Judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence l/we have obtained is sufficient and appropriate to provide a basis forour audit opinion on theCompany's internal financial controlssystem over financialreporting

Meaning of Internal Financial Controls Over Financial Reporting

Acompany's internal financial control overfinancial reporting is a process designed toprovide reasonable assurance regarding the reliability of financial reporfng and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. Acompany's internal financial controloverfinancialreportingincludesthosepollclesandproceduresthat

(1) pertaritothemaintenanceofrecordsthat in reasonable detail accurateiyand fairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;

(2) provide reasonable assurance thattransactionsare recordedasnecessarytopermitpreparation of financial statementsinaccordancewith generally acceptedaccounting principles andthat receipts and expenditures of the company are being madeonlyinaccordance with aufiorisations of management and directors of the company; and

(3) provide reasonable a ssura nee regarding prevention ortimely detection ofunauthorised acquisition use ordispositton ofthe company's assets that could have amaterial effector the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the Internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions orthatthe degree of compliance with the policies or proceduresmaydeteriorate.

Opinion

In our opinion the company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31" March 2021 based onthe Internal control over financial reporting criteria established by the companyconsidering the essential components of Internal control stated In the Guidance Note on‘Auditof Internal Financial Controls Over Financial Reporting" Issued by theInstitute of Chartered Accountantsoflndia.

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